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In the notice of deficiency, respondent determined a
deficiency in petitioners' excise tax under section 4980A in the
amount of $7,569.5 In the petition, petitioners claimed an
overpayment of income tax in the amount of $30,139 with respect
to the additional tax imposed under section 72(t).
OPINION
The issues for decision are whether petitioner Richard J.
Montgomery is liable for the 15-percent excise tax under section
4980A, and whether petitioners are liable for the 10-percent
additional tax under section 72(t). As previously noted, the
resolution of these issues turns on whether the Transfer Refund
was paid from a qualified plan within the meaning of sections
4980A(e)(2), 72(t) and 4974(c).
1. Section 4980A Issue
Section 4980A imposes a 15-percent excise tax on excess
distributions from qualified retirement plans. Sec. 4980A(a).
As relevant herein, an "excess distribution" is defined as the
aggregate amount of "retirement distributions" with respect to
any individual during any calendar year to the extent that such
amount exceeds $150,000. Sec. 4980A(c)(1). Retirement
distributions are the amounts distributed to an individual under
an individual retirement plan or any "qualified employer plan"
with respect to which such individual is or was the employee.
5 See supra note 3 regarding respondent's concession.
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Last modified: May 25, 2011